Caption by Hyatt
Hyatt Hotels Corporation
Company Information
150 North Riverside Plaza Chicago, Illinois 60606
We have offered franchises for full service hotels under the Hyatt Regency name from December 1994 until April 1997 and have again offered those franchises since September 2006. We have offered franchises for full service, lifestyle hotels under the Hyatt Centric brand since February 2015. We have offered franchises for full service hotels under the Hyatt name (without a sub brand) from December 1994 until April 1997 and again from September 2006 until January 2015. We have offered franchises for unique, up scale accommodations and hospitality affiliations operating in the United States under their own names but associated with The Unbound Collection by Hyatt name since June 2016. In December 2018, one of our affiliates acquired the boutique hotel company Two Roads Hospitality, which includes certain rights relating to several hotel brands, including the JdV by HyattTM and Destination by Hyatt™ brands. We began offering franchises for “lifestyle” hotels operating in the United States under the brand names “Destination” and “joie de vivre” (also referred to as “JDV”) in May 2019 and under the brand name “Caption by Hyatt” in September 2019. We now refer to these brands as “Destination by Hyatt™, “JdV by Hyatt™” and “Caption by Hyatt” respectively. We have never offered franchises in any other line of business
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Franchise Rating
Franchimp Summary Rating
2/10
Earning Transparency
1/10
Investment Accessibility
3/10
Franchise System Development
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Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $218,150 Maximum: $350,240
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $25,971,575 Maximum: $72,016,410
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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